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These days everyone in my Bahá’í-inspired life coaching practice is looking for ways to reduce debt and save money. It is possible to wipe out your existing debt and learn how to live your life within your means. As you’ll see below, the traditional approach is best combined with the Bahá’í Writings.

Here are five tips from the Bahá’í Faith that will help you on your way to debt free living:

1. Consider our debts as sacred, and pay them before everything else.

Our debts, however, should be considered as sacred and take precedence over any other thing [ i.e., payment of debts comes before contributions to the Cause] for upon this principle does the foundation of our economic life rest. (Shoghi Effendi, Principles of Bahai Administration, p. 20)

2. Pay our Huqúq (Right of God) and keep it up to date.

It is clear and evident that the payment of the Right of God is conducive to prosperity, to blessing, and to honour and divine protection. (Baha’u’lláh, Huqúqu’lláh, #6, p. 2)

Well is it with him who ascendeth unto God, without any obligations to Huququ’llah and to His servants. (Baha’u’llah, Lights of Guidance, p. 306)

Know thou moreover, that those who faithfully serve the All-Merciful will be enriched by Him out of His heavenly treasury. (‘Abdu’l-Bahá, Huqúqu’lláh, #75, p. 26).

Thou hast asked regarding the means of livelihood. Trust in God and engage in your work and practice economy; the confirmations of God shall descend and you will be enabled to pay off your debts. Be ye occupied always with the mention of Baha’u’llah and seek ye no other hope and desire save Him. (‘Abdu’l-Baha, Baha’i World Faith, p. 375)

4. Focus on spiritual health.

I hope thou wilt become as a rising light and obtain spiritual health — and spiritual health is conducive to physical health — so that thou mayest be enabled to liquidate thy debts. (Abdu’l-Baha, Tablets of Abdu’l-Baha, v2, p. 305)

5. Use this prayer:

And, finally, I beg of Thee by the light of Thy countenance to bless my affairs, and redeem my debts, and satisfy my needs. (Baha’u’llah, Prayers and Meditations, p. 248)

There are steps we can take on the material plane too, to enable us to “walk the spiritual path with practical steps.”

Here are 5 additional steps you can take:

1. Stop using credit cards. One of the leading factors in the current economic crisis is people buying things on credit they cannot afford. The next thing they know, they find themselves unable to do anything more than make minimum monthly payments.

Minimum payments will keep you in debt because every month interest continues to accrue on your original balance. A $1,000 balance on a typical credit card can take 22 years to pay off if you make only the minimum monthly payments!

Don’t fall into the trap of credit card debt. Instead, avoid the hassle and expense by paying cash for the things you buy. If you want a big-ticket item, save the cash before you make the purchase. Only buy when you can afford to pay for the item in full before you bring it home.

2. Buy luxury items with cash. We all have extras and luxuries we want, but using credit to get them is a dangerous path to take. You’ll get much greater enjoyment from the extras in your life when you pay cash, rather than ongoing monthly payments.

Nothing takes the excitement out of a new toy or nice vacation more than the large payments that strain your budget month after month.

3. Create a realistic budget that includes debt repayment. The first step in gaining control over your debt is creating a workable budget. Rather than stifling you, a budget can bring you freedom! You’ll know where your money goes and you’ll set a spending plan so you can continue buying the most important things in your life.

Your budget should take into consideration all facets of your lifestyle, including housing, food and household items, utilities, savings, recreation and debt repayment.

If your budget doesn’t include room for debt repayment, there will never be enough money to pay off your debt. Take control of your financial reality by working with a realistic budget every month. Before long, you’ll see your debt diminishing while your savings grow.

4. Seek the help of a professional credit counselor, accountant or financial planner. The best way to be sure you’re making sound financial decisions is to seek out the help of a financial professional.

Credit counselors, financial planners and accountants are experts in the areas of savings, debt repayment, investments and tax deductions. Implement each of these areas into your finances to eliminate financial strain and secure a stable financial future.

5. Negotiate better rates with the banks or credit card companies. Many people assume they have no choice but to accept the interest and finance rates offered by their banks and credit card companies, but that isn’t always the case!

Talk to the people at your financial institutions. You may be surprised at how willing they are to budge.

If your credit is in good shape or you’ve made steady, progressive strides to improve it, you may be able to get lower interest rates on your debts.

You might also receive higher interest rates on your savings, giving you a double shot at eliminating your debt entirely and moving forward with your finances in a positive direction.

You can repair your debt problems and learn to avoid creating them in the future. These five steps will point you in the right direction and get you started on a new path to financial freedom and prosperity!

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13 Comments

Shirley

August 30, 2009 at 9:01 am ·

this excellent article will be shared with the members of my family. We can so easily fall in to the credit card trap, and now that I work for a financial institution I realize how important it is to keep up to date with payments. Paying a large amount on your credit card balance (more than the minimum payment, and skipping the next payment will negatively affect your credit rating really fast!! I cannot emphasize this enough. If you do this and then later try to get a loan for something really important, like a student loan, you may not be able to get it because of that couple of skipped payments. Neglecting financial needs can result in an imbalance in the entire system of your health- physical, mental and spiritual. Thanks for listening.

Kelly Barr

August 30, 2009 at 10:48 pm ·

Susan, couldn’t have said it better myself. Well done.

sukhum abhasakun

March 3, 2013 at 11:45 pm ·

I found this is a useful article for us all to study and practice

Mohan

March 12, 2013 at 12:42 am ·

Thank you immensely Susan. Excellently stated!!!!!!! Will share that with my children and nephews and nieces!!

Helena

April 17, 2014 at 8:20 am ·

After a divorce, I was debt free, working for the first time in 20 years and living within my means. We reconciled and enjoyed a time of renewal for 6 years. Unfortunately I got into debt and the reconciliation ended. Recently I consolidated my debt, am working but not in the field I was working in before. It is difficult and stressful but I am managing. This situation has forced me to ask for divine help, pray everyday and to remember that “God sufficeth all things”.

In order to get control of my money and get debt free, I used a piece of software called You Need a Budget

I can’t say enough good things about this program. It comes with a free trial; is worth every penny and a LOT more; it comes with great teaching materials and fantastic support. I’m not paid to say this, so give it a try! 🙂

I’m sorry to hear of your struggles, Helena! And I commend you for your commitment to paying off your debts and living within your means! It’s definitely stressful when our means are reduced! The Writings are full of comforting quotes about the Benefits of Poverty and Homelessness, and to this end I’ve written a couple of articles you might find helpful:

In 2009, during the thick of the financial recession, my late wife and I were overwhelmed by our choices regarding treatment of her autoimmune disease. Debts that had been paid faithfully up to that point became unwieldy, and in carefully consultation with both Baha’i and secular experts, we elected to file for bankruptcy, under Chapter 7. Our creditors were given every opportunity to seek redress, though only two asked to be paid in full, which they were. We subsequently began a slow financial recovery, with particular help from Dave Ramsey and his financial responsibility network.
Penny passed to the Abha Realm in 2011, and I am still living according to a “cash only” regimen. I am pleased to have returned to the status where Huquq is now due. I mention these things, not to open myself up to criticism for “untruthfulness”, but to point out that, even in the direst of states, God will guide the faithful to a place of sustenance.

I’m saddened to think people would criticize you for untruthfulness! I can’t imagine for what!

We’re told in the Bahá’í Writings to consult in all matters; and to make our decisions prayerfully; and when we do that, we can be confident that we’re doing the right thing!

I’m glad that you were able to make a financial recovery and are still living according to a “cash only” regimen. For readers unfamiliar with Dave Ramsey and his program, you can read more at: http://www.daveramsey.com/home/

I may have mentioned this earlier, but in 2009, when my wife and I were feeling crushed by the costs of dealing with her disease, which would prove to be fatal, one of my siblings strongly suggested we file for Chapter 7. At first, we were horrified, and resisted, using all the quotes you state above. I did, however, consult with Baha’i financial experts, who stated that, as Chapter 7 is the law of the land, and as the market was operating on exorbitant rates of interest, it would be permissible for us, as Baha’is, to proceed with this declaration- ONCE. I was also advised that, in the future, we should not hold credit cards for at least seven years from the point of our absolution by the Court and our creditors, and we should certainly avail ourselves of financial counseling.
My wife passed to the Abha Realm in 2011. I have lived on a cash economy since then, and have not incurred further debt.

Ya Baha’u’l-Abha! Thanks for the “real life” story, Gary! I’m sorry you were crushed by the costs of dealing with your wife’s medical cost and sorry for your loss. You make an important point about bankruptcy being the “law of the land”. Thank you for this important insight, which will no doubt ease many people’s minds!

Marie Jackson

August 8, 2016 at 11:54 am ·

ALL of this is perfect advice …instinctual even. I just find it difficult to operate without credit cards. For example, just the other day a part of my garage door (a spring) broke. My car and other items were locked in with no way to open it either with the remote control or by hand. The final cost for the emergency repair … more than $300. I hated to do so, but I had to use a credit card as I had no cash and no way to acquire it.
I know I should make a budget, but I am in fear of learning what dire straits I’m in. I’m trying, but too often end up with terribly low funds by the end of the month (pension check).
But, I’m glad to have read this article. It gives me so much encouragement to ‘just go ahead and do it’.

I’m like you Marie – I live on a small pension cheque and was close to having to declare bankruptcy when someone told me about YNAB It’s budgeting software that’s totally customizable, comes with LOTS of free online training via videos and live webinars. You can try it free for just over a month. I’ve been using it for many years, and it’s got me debt free and living comfortably within my means. I can’t say enough good things about it! Give it a try! It’s absolutely worth the cost! (and no, I don’t get a kickback from recommending it! I just believe in it very strongly!)

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Note: The materials on this site reflect the current understanding of Susan Gammage from her experience in the Bahá’í community and as a Bahá’í-inspired researcher/author. They do not represent an official interpretation of the Bahá’í Writings. They are simply offered as an educational resource for Bahá’ís to consider as they strive to understand and implement the Writings into their lives, institutions and communities. Any questions about the application of certain quotes to your own particular situation should be directed to the Bahá’í institutions. Official websites include www.bahai.org (international); http://www.ca.bahai.org/ (Canadian) and http://www.bahai.us/ (American).